MATEWAN – The Town of Matewan will assume the assets of the Red Jacket sewer system Sept. 25 if the necessary paperwork is in place, says Matewan Mayor Shelia Kessler.

Kessler said Matewan has carried the responsibility of the system for at least 16 years, but that the town has not received payment for their services. With no funds to pay for repairs or replacement, the system has fallen into disrepair, and flooding in May of this year finally rendered the system inoperable.

The town relied on payment from Red Jacket sewer customers to pay the bond that was issued to initially pay for the system. However, the payments from those customers went to a receiver, accountant Todd Dingess, who has not forwarded the money to Matewan, Kessler said. In addition, many Red Jacket sewer customers have not paid, or have paid erratically, leaving the town in a financial lurch.

Without the money from Red Jacket customers, Matewan has defaulted on its bond payments to the USDA (United States Department of Agriculture).

The town has been unable to take measures to collect from the Red Jacket customers that have not paid their bills, Kessler said.

“The Public Service District wouldn’t allow us to discontinue their service, we aren’t allowed to put a lien on their property,” Kessler explained. “There are some customers with outstanding bills for thousands of dollars, and we have had to just write those off as bad debt.”

The cost to repair the system has been estimated to be between $4.5 million and $5 million, while the cost of replacing the system is $6.5 million to $7 million.

One Newtown resident, Barbara Chafin, says she plans to send a letter to Gov. Joe Manchin, which has been signed by members of the Mingo County Commission, requesting the governor secure some funding from the federal stimulus to address the issues with the sewer system.

“I appreciate everything Matewan has done for the customers of the Red Jacket system,” she said. “I just hope they can get some stimulus money. I am afraid if they don’t, the town will have to get a loan, and then the cost of a loan will be passed on to the customers.”

Mayor Kessler said that would be the case.

“If we can’t obtain stimulus funds, we will probably have to get a loan from the USDA,” she said.

But the first step in the process is for Matewan to gain possession of the Red Jacket system. That process is set to be concluded next week. But the mayor said she is concerned the USDA will be able to close the deal.

“The USDA contacted Todd Dingess and told him everything they would need in order for Matewan to take possession of that system,” she said. “He has still not confirmed that he will furnish the required paperwork, we need this in order to move forward with this project.”